Joining CNBC Africa to unpack this further is Rorke Wilson, Associate at the Digital Law Company.
We're staying on social media this time, we're moving on to TikTok. It's not just an app, it's a global stage for creativity, for business and for cultural connection. So what happens when the curtain falls on the US? The potential banning, well the banning of TikTok is raising big concerns around a number of things, security, economic disruption and just a cultural impact. So for small businesses who are relying on its algorithm for survival, businesses that have managed to grow huge when they become popular on the platform with users across the globe, people who've turned passions into careers, this is an unbelievable platform for Gen Zs with brands who are brands to make a living. Let's explore this conversation further, the cost of what's happening in the US with Shira Jashmin, when her article in Forbes gave us a little bit more insight. I pulled a couple of her insights and I want to have the conversation now with Rorke Wilson, Associate at the Digital Law Company. Rorke, thank you so much for joining me. I really loved unpacking these and having a look at the number of conversations around it. What are your thoughts on what the implications are of the move in the US? My thoughts is that it's going to be a really exciting two weeks ahead of us. There's a lot that we don't know. So as we're aware, the US has ordered Chinese-owned ByteDance to divest from TikTok by the 19th of January. If they don't do this, app stores won't be allowed to host the app on their platforms anymore and ISPs on US companies won't be able to advertise on the platform. One thing we're not so sure about yet is whether ISPs will be required to block access to TikTok servers because of the grey area in that. But it's up in the air because TikTok has challenged this in the Supreme Court on First Amendment grounds. They've claimed that the ban violates their right to freedom of speech by cutting off all speech on the platform. The justices do question this. They say that other media broadcasters that were foreign-owned have been forced to divest in the past. So this isn't alien for the US. But then on the other side, still within the court, coming from the justices, they did ask whether this TikTok-owned, this Chinese-owned company was any different to, say, Oxford University Press or the German-owned Politico. So we really don't know where this could go in the next few days. That's why I found it quite exciting. Look, I think that they're going to fight and we don't know what's going to happen. So that's a sort of like watch and see game. However, let's say it does get removed from the platforms and Americans no longer have access to it. It's a loss for everybody, but it's a loss that we can maybe just go down and break it down to perhaps small businesses and influences. You know, just give us give our viewers a view of just how much business is being done on this platform. Yeah, no, the ramifications of this fall for content creators is profound. So, you know, when we speak about TikTok, we talk about the dancers and the kids eating laundry detergent. But as you mentioned, this ecosystem is very rich and it allows content creators to have multiple ways to generate income, including brand partnerships, advertising deals, features that allow them to convert virtual gifts sent to them over livestream into cash. And on top of that, just the amount of value that they get out of their massive following. So, for example, the biggest content creator right now on TikTok is Charlie D'Amelio. And since 2019, she's setting up a brand and now has over 150 million followers and makes around 100000 USD per post. And, you know, from January 19th, that entire source of income is left up in the air for her. And it's not just Charlie. So the Wall Street Journal estimates that around 44 percent of people in the U.S. identify as full-time content creators. Another source puts the number at around 45 million people that are relying on content creation as one of their main sources of income. And then around 15 million of those people, it is their only source of income. So this is a large amount of people who are being left up in the air and can potentially lose their fan bases that can range from 10,000 to 100,000. And they'll be pushed onto other platforms and potentially made to start over from scratch if they haven't diversified their social media portfolios. Even if you diversified, this cannot be repeated on any other platform. Instagram has tried and the reels really don't do what TikTok does for some reason. So it's even difficult to diversify. But businesses have just gotten their head around how to do TikTok effectively. And as they are getting it right, it gets removed. There are huge implications for big businesses as well. Massive implications. I mean, for the past few weeks and months, advertisers have been scrambling to develop contingency plans. I mean, this exit could redirect, if I remember the figure correctly, around 11 billion in USD to different competitors. Meta is expected to pick up between 2.5 and 3.5 billion of this reallocation. So massive market shifts could come from this if ByteDance doesn't choose to sell. And this is really great for Meta, but it can be devastating for the advertisers. Because as you said, they've spent a lot of time figuring out how TikTok works. And for a lot of these platforms, the algorithms aren't transparent. And they'll be starting from scratch all over again, trying to figure out now how can we game Instagram? How can we game Facebook? They won't be gaming Facebook. Youth don't use that anymore. But yeah, everyone's going to have to re-strategize and, in a way, be put on the same baseline and left to the randomness of the algorithm over who's going to become the next top influencer on whatever platform is big next. And we really underestimate these influences and the impact that they have. Just over my holiday now, my daughter saw three influencers in restaurants, in places. They pick each other up. And some of the performers who came in, some of them are influencers. She sees them. So these are the new celebrities. These are the new people that are pulling together Gen Z. And I clumsily earlier on mentioned an article on Forbes by Shira around social culture for Gen Zs. We don't know the price of that, but there's a huge cultural price that's being paid by the US to US Gen Zs and also globally, right? Yeah, there's a massive impact. It's one of the top five platforms that teens spend most of their time on and how they connect with their peers. So yeah, it will throw a massive shake up into how they do that. I don't think it is that big of a deal, though, because having been a teen quite recently myself, they are resilient and they will find a new platform. So I don't think there's massive ramifications that are going to come from that. Already in the last two days, a million users have migrated to another platform called Red Note, also Chinese owned funnily enough. So they're not even achieving everything that they're trying to with this bill. Oh, well, I'm kind of disappointed by that last statement. It took me quite a while to be a fan of TikTok, currently just following as Cortani in South Africa, huge flow of advertising and just playing on that theme. So now I've got to go on to Red Note. I would be devastated if I had to move. But thank you so much for joining me, Rourke, to give myself and our viewers a view of the implications and just how social media is running with business and creating business. That was Rourke Wilson, associate at Digital Law Company.
Theme: The potential banning of TikTok in the United States and its implications on businesses and content creators
The potential banning of TikTok in the United States is causing a stir in the social media world, with concerns ranging from security to economic disruption and cultural impact. TikTok, a platform known for fostering creativity and connection, has become a crucial space for small businesses, content creators, and influencers to thrive. The looming uncertainty surrounding the app has left many wondering about the implications of its potential removal from US app stores and the impact it could have on businesses and content creators. Rorke Wilson, an Associate at the Digital Law Company, sheds light on the possible outcomes and challenges faced by those who rely on TikTok for their livelihoods. Wilson highlights the legal battle between TikTok's parent company, ByteDance, and the US government, emphasizing the uncertain future that lies ahead. The discussion delves into the significant role TikTok plays in the lives of content creators and businesses, touching on the income streams and opportunities it provides. From brand partnerships to advertising deals, TikTok has enabled individuals to turn their passions into profitable careers, making it a vital platform for many. With the potential ban looming, the livelihood of millions who rely on TikTok for income hangs in the balance. Content creators, influencers, and businesses face the prospect of losing their fan base and revenue streams, forcing them to adapt to alternative platforms or start from scratch. The implications extend beyond individual creators to large corporations that have invested in TikTok advertising. Advertisers are now faced with the challenge of reallocating their marketing budgets and navigating new platforms, leading to a significant market shift. Wilson also underscores the cultural impact of TikTok's potential ban on Gen Z users, highlighting the platform's importance as a space for social connection and peer interaction. Despite the potential upheaval, Wilson remains optimistic about the resilience of young users in adapting to new platforms. Already, a migration to alternative platforms like Red Note has begun, indicating a swift response from users to the impending ban. While the uncertainty surrounding TikTok's future looms large, the social media landscape is poised for a transformation that could reshape the way businesses and content creators engage with their audiences. As the saga continues, the impact of TikTok's potential ban on the digital ecosystem remains a topic of intense debate and speculation.
"The potential banning of TikTok in the United States is causing a stir in the social media world, with concerns ranging from security to economic disruption and cultural impact."
['TikTok ban', 'business impact', 'content creators', 'social media', 'digital ecosystem', 'advertising', 'influencers']